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Your money is under strain as the pace of price increases accelerates.
The inflation rate, which reflects the rising cost of living, reached 2.3% in October.
Prices are not exploding at the rate seen recently. Inflation peaked at 11.1% two years ago. But there are concerns about the impact that the situation has and will have on citizens' finances.
Here are four ways these numbers affect you.
The cost of living crisis is not over
Any visit to the supermarket reminds us that prices have risen sharply in recent years.
Compared to October 2020, prices of goods and services are 24% higher, due to rising food and energy prices.
This shows the continued impact of price increases over the past few years, regardless of what is happening now.
Although high inflation is considered harmful, low inflation is considered necessary to stimulate economic growth.
The inflation target rate for the Consumer Price Index (CPI), set by the government, is 2%.
At 2.3%, the rate is close to this level, but is at its highest level in six months.
Wages are rising at a faster rate, offsetting some of these price increases, but concerns among charities are growing over benefits recipients.
Most working age benefits, such as Universal Credit, will increase by 1.7% in April – which analysts say will be lower than the rate of price rises.
Many people are still struggling to pay off debts accumulated over the past few years. Some £3.7 billion is collectively owed to energy suppliers by people unable to pay their gas and electricity bills, for example.
Inflation is volatile
Analysts had expected inflation to rise below 2.3%.
But you shouldn't trust too much in a figure over one month.
As with any economic statistic, one month's data may buck a general trend and should be considered in conjunction with other published data.
It's also worth noting that some of the factors behind the latest price rise came from outside the UK.
Rising energy costs are mainly driven by the price of energy in global markets, but they also have an impact on household and business bills.
Interest rate cuts will be more gradual
Interest rates affect the cost of borrowing and the returns available to savers.
The reference rate – or base rate – set by the Bank of England currently stands at 4.75%. It was reduced by 5% earlier this month.
This is the main tool used by the Bank to try to keep inflation at its 2% target. Rising rates curb borrowing and spending, thereby limiting price increases, and vice versa.
With inflation well below its peak, the Bank has – and is still expected to – cut interest rates.
But recent events, such as the budget and now a higher-than-expected inflation rate, mean markets have revised their expectations for the timing and frequency of these cuts.
Even the Bank's governor warned that they could not be cut “too quickly or too sharply”, leading to predictions that the key rate was unlikely to be cut in December.
The impact for homeowners is that fixed mortgage rates have actually increased gradually, despite the latest interest rate cut.
Official figures show that the cost of renting a home has also increased. The average rent paid to private landlords increased by 8.7% over the year to October, according to the ONS.
However, savers could see the interest paid on their savings hold up better than would otherwise be the case.
We don't know what's going to happen next
Global and domestic factors will have a significant impact on how quickly prices rise, but how they evolve remains uncertain.
Donald Trump's victory in the US presidential election was helped by his decision to exploit voters' concerns about the cost of living, analysts suggest.
He pledged to impose a blanket 20 percent tariff on all imports into the United States.
If it introduces tariffs – a tax imposed by one country on goods and services imported from another – it could lead to higher prices, including in the UK, economists say.
At the national level, budgetary measures, such as increasing national insurance paid by employers, have raised fears that the extra cost could be reflected in higher prices or fewer jobs.
However, other events could have a positive impact. A rapid and relatively orderly end to conflicts such as the war in Ukraine could upend the global economic outlook – although the impact of such geopolitical complexity is extremely difficult to assess.
How can I save money on my grocery store?
Look at your cupboards to see what you already have. Head to the collapsed section first to see if it has everything you need. Buy things close to their expiration date, which will be cheaper, and use your freezer.
Read more tips here